Ares Commercial Real Estate (ACRE) Stock Overview
A specialty finance company, engages in the originating and investing in commercial real estate (CRE) loans and related investments in the United States. More details
| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 2/6 |
ACRE Community Fair Values
Create NarrativeSee what 15 others think this stock is worth. Follow their fair value or set your own to get alerts.
Analyst Price Targets
Ares Commercial Real Estate Corporation Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$4.72 |
| 52 Week High | US$5.89 |
| 52 Week Low | US$4.05 |
| Beta | 1.23 |
| 1 Month Change | -8.70% |
| 3 Month Change | -8.70% |
| 1 Year Change | -1.67% |
| 3 Year Change | -46.79% |
| 5 Year Change | -68.68% |
| Change since IPO | -73.78% |
Recent News & Updates
Seeking Alpha • Apr 28
Ares Commercial Real Estate Still On The Bench As Near-Term Upside Limited
Summary Ares Commercial Real Estate gets its prior hold rating reaffirmed again. Key upside to drive growth could come from its new loans originated, however it is also on a portfolio optimization strategy to reduce office exposure. Loan loss reserve trends seem to be on an improvement track. The dividend growth and safety picture is not compelling right now. This sector/niche can be highly impacted by interest rate risk and Fed decisions, so those are trends/patterns to watch. Read the full article on Seeking Alpha
Narrative Update • Apr 23
ACRE: Q4 Mortgage Review Will Support Measured Forward P E Expectations
Narrative Update on Ares Commercial Real Estate The analyst price target for Ares Commercial Real Estate has shifted modestly to $5.38, as analysts factor in a slightly lower fair value estimate, an updated discount rate, and revised P/E expectations following recent research updates from JPMorgan, BofA, and Wells Fargo. Analyst Commentary Recent research updates on Ares Commercial Real Estate present a mix of optimism and caution, as analysts recalibrate price targets and estimates following sector wide Q4 reviews.Narrative Update • Apr 09
ACRE: Q4 Mortgage Finance Reset Will Support Higher Forward P E Assumptions
Analysts have nudged the 12 month price target for Ares Commercial Real Estate up by $0.50 to $5.00, citing updated estimates across the mortgage finance group following recent quarterly results. Analyst Commentary Recent price target moves to US$5.00 reflect updated models after the latest quarterly results from the mortgage finance group, rather than a clear shift in overall sentiment.Recent updates
Seeking Alpha • Apr 28
Ares Commercial Real Estate Still On The Bench As Near-Term Upside Limited
Summary Ares Commercial Real Estate gets its prior hold rating reaffirmed again. Key upside to drive growth could come from its new loans originated, however it is also on a portfolio optimization strategy to reduce office exposure. Loan loss reserve trends seem to be on an improvement track. The dividend growth and safety picture is not compelling right now. This sector/niche can be highly impacted by interest rate risk and Fed decisions, so those are trends/patterns to watch. Read the full article on Seeking AlphaNarrative Update • Apr 23
ACRE: Q4 Mortgage Review Will Support Measured Forward P E Expectations
Narrative Update on Ares Commercial Real Estate The analyst price target for Ares Commercial Real Estate has shifted modestly to $5.38, as analysts factor in a slightly lower fair value estimate, an updated discount rate, and revised P/E expectations following recent research updates from JPMorgan, BofA, and Wells Fargo. Analyst Commentary Recent research updates on Ares Commercial Real Estate present a mix of optimism and caution, as analysts recalibrate price targets and estimates following sector wide Q4 reviews.Narrative Update • Apr 09
ACRE: Q4 Mortgage Finance Reset Will Support Higher Forward P E Assumptions
Analysts have nudged the 12 month price target for Ares Commercial Real Estate up by $0.50 to $5.00, citing updated estimates across the mortgage finance group following recent quarterly results. Analyst Commentary Recent price target moves to US$5.00 reflect updated models after the latest quarterly results from the mortgage finance group, rather than a clear shift in overall sentiment.Narrative Update • Mar 25
ACRE: Q4 Mortgage Finance Reset Will Support Higher Future P E Assumptions
Analysts have adjusted their views on Ares Commercial Real Estate, with recent research citing updated mortgage finance sector estimates and leading to Street price targets such as $5, up from $4.50. This feeds into the refreshed Narrative Update you see here.Narrative Update • Mar 07
ACRE: Fair Value View Will Reflect Updated P/E And Sector Assumptions
Analysts have raised their price target on Ares Commercial Real Estate to $5, an increase of $0.50, citing updated sector estimates and refreshed assumptions for fair value and future P/E multiples. Analyst Commentary Analysts updating their models after recent sector reports are fine tuning their views on Ares Commercial Real Estate, with some highlighting valuation upside from revised fair value work and others focusing on execution risks that, in their view, justify more cautious ratings.Narrative Update • Feb 21
ACRE: Fair Value View Will Reflect Updated P/E And Discount Rate Assumptions
Analysts have raised their Ares Commercial Real Estate price target from $4.75 to $5.30, citing updated assumptions around discount rates, revenue trends, profit margins, and a higher future P/E multiple reflected in recent Street research. Analyst Commentary Bullish Takeaways Bullish analysts view the higher price target of US$5.30 as better aligned with updated assumptions on discount rates and future P/E, which they see as more reflective of current Street research inputs.Narrative Update • Feb 06
ACRE: Fair Value View Will Reflect Slight Shifts In Margin And P/E Assumptions
Narrative Update on Ares Commercial Real Estate Analysts have trimmed their price target on Ares Commercial Real Estate by a small amount to $4.75, citing slightly lower discount rate and profit margin assumptions, along with a modest adjustment to the future P/E outlook as the key drivers of the change. Valuation Changes Fair Value: Kept unchanged at $4.75, so the headline valuation anchor stays the same for now.Narrative Update • Jan 23
ACRE: Fair Value View Will Balance Margin Assumptions And Inactive Buyback Program
Analysts have adjusted their price target for Ares Commercial Real Estate slightly higher to $4.75, citing minor updates to discount rate assumptions and modest refinements to revenue growth, profit margin, and future P/E expectations. What's in the News The company reported that from July 1, 2025 to September 30, 2025, it repurchased 0 shares for $0 million under its authorized buyback program.Narrative Update • Jan 08
ACRE: Fair Value Outlook Will Balance Margin Pressure And Unused Buyback Potential
Narrative Update on Ares Commercial Real Estate The latest analyst price target for Ares Commercial Real Estate implies an updated fair value of $4.75 per share. Analysts point to modest tweaks in the discount rate, revenue contraction expectations, profit margins, and forward P/E assumptions as the key drivers of this recalibration.Narrative Update • Dec 16
ACRE: Future Earnings May Disappoint As Credit Risks And Loan Losses Mount
Analysts have nudged their fair value estimate for Ares Commercial Real Estate higher to approximately $4.75 per share from about $4.31, citing expectations for accelerating investment activity, loan resolutions, and stronger profitability despite weaker top line growth. Analyst Commentary Bullish analysts point to a constructive outlook for Ares Commercial Real Estate as incremental improvements in investment activity and loan resolutions begin to be reflected in valuation models.Narrative Update • Aug 07
Industrial Multifamily And Self-Storage Sectors Will Generate Long-Term Momentum
The Ares Commercial Real Estate price target was revised downward due to sharply deteriorating revenue growth expectations and a weaker net profit margin outlook, lowering its fair value from $5.08 to $4.44. What's in the News Ares Commercial Real Estate Corporation is expected to report Q2 2025 results on August 6, 2025.
New Narrative • May 01
Commercial Real Estate And Asset Improvements Will Secure Future Stability
Strategic capital allocation and improved portfolio quality are expected to enhance earnings and shareholder value.Seeking Alpha • Mar 13
Ares Commercial: 50%+ Book Value Discount Is Excessive (Rating Upgrade)
Summary Ares Commercial Real Estate announced a 40% dividend cut for Q1 '25, reducing the quarterly dividend to $0.15 per-share. Persistent loan quality issues, particularly in the office portfolio, forced ACRE to divest loans at a loss and reduce financial leverage. Shares trade at a 50%+ discount to book value, reflecting deep investor distrust despite the REIT's efforts to de-risk and reset for growth. While risks remain in loan performance and dividend coverage, a small speculative long position in ACRE could be considered due to potential value creation. Read the full article on Seeking AlphaSeeking Alpha • Feb 26
Ares Commercial Real Estate: 40% Dividend Cut, What Now?
Summary Ares Commercial Real Estate Corporation cut its dividend by 40% due to persistent loan quality issues and underperforming distributable earnings, following a 24% cut in early 2024. The mortgage REIT's book value has declined significantly, now trading at a 50% discount due to ongoing loan losses and a contracting net interest margin. Despite the dividend cuts, the trust's pay-out metrics remain unstable, leading to a 'Hold' rating as concerns about the company's financial stability persist. Other REITs like Blackstone Mortgage Trust and Apollo Commercial Real Estate Finance also cut dividends, but Ladder Capital Corp offers the best value with a 4% BV discount. Read the full article on Seeking AlphaSeeking Alpha • Feb 12
Ares Commercial: Mortgage REIT Cuts On Schedule
Summary Ares Commercial cut once again. Q4-2024 saw negative distributable EPS and increased loans rated 4 and 5. ACRE has had the worst underwriting results in mortgage REITs, and it is not even close. We are upgrading them, nonetheless. Read the full article on Seeking AlphaSeeking Alpha • Jan 14
Ares Commercial: The Worst Could Be Ahead
Summary ACRE's heavy exposure to distressed asset classes like office, multifamily, and hotels, coupled with rising delinquencies, justifies a Sell rating. Despite management's optimistic outlook, ACRE's increasing credit loss reserves and poor loan performance signal ongoing struggles in the commercial lending market. Multifamily and office markets continue to face significant challenges, with high vacancy rates and oversupply leading to falling rents and asset underperformance. Read the full article on Seeking AlphaSeeking Alpha • Dec 09
Ares Commercial Real Estate: High Yield Is A Red Flag (Downgrade)
Summary Ares Commercial Real Estate failed to cover its dividend with distributable profits in 3Q24, reflecting high dividend adjustment risk and ongoing loan issues. The trust's portfolio has shrunk by 15% due to selling impaired loans, leading to a 72% YoY drop in distributable profits and negative net income. Ares Commercial Real Estate's stock trades at a 32% discount to book value, but the elevated dividend risk necessitates a rating change from 'Buy' to 'Hold.'. Despite slight improvement in distributable earnings, the trust's dividend coverage remains inadequate, suggesting a potential dividend cut in early 2025. Read the full article on Seeking AlphaSeeking Alpha • Nov 21
Ares Commercial: The 14% Yield Is Likely Not Sustainable
Summary Ares Commercial continues to face problems related to impaired loans in its office segment. The commercial mortgage REIT was forced to increase its CECL reserve in the third-quarter. ACRE realized losses of $0.10 per-share related to loan sales. Even when adjusting for such loan losses, the REIT did not support its dividend with distributable earnings. I continue to see a high risk of a dividend reset if Ares Commercial doesn't improve its loan profile. Shares are trading at a 31% discount to book value, which indicates that the market does not have a lot of confidence in the REIT's 14% dividend yield. Read the full article on Seeking AlphaSeeking Alpha • Sep 13
Ares Commercial Real Estate: 14% Undercovered Yield, But There Is Hope
Summary Ares Commercial Real Estate reported negative distributable earnings for the second consecutive quarter due to loan sales below book value, impacting profitability and book value. Despite ongoing loan issues, Ares declared a $0.25 per share dividend for 3Q24, reflecting management's confidence in a potential earnings rebound. The stock trades at a 34% discount to book value, suggesting that concerns about dividend cuts are already priced in. Continued negative earnings could force another dividend cut, but the significant discount to book value may limit further downside in the stock price. Read the full article on Seeking AlphaSeeking Alpha • Aug 08
Ares Commercial: Another Big Loan Goes On Non-Accrual
Summary Ares Commercial Real Estate Corporation cut its distribution within two weeks of our initial coverage, resulting in negative total returns. Q2-2024 results showed significant losses, with non-accrual loans and a decreasing net interest margin contributing to financial struggles. We tell you what the sustainable distribution level is for the firm, assuming everything goes right. Read the full article on Seeking AlphaSeeking Alpha • May 19
Ares Commercial Real Estate: 14% Yield Might Be Sustainable
Summary Ares Commercial Real Estate Corporation suffered a decline in distributable earnings in Q1 due to non-accrual issues in its loan portfolio. The trust increased its provision for credit losses by over $22 million, but the stock did not react significantly, suggesting it may have already bottomed out. With a 38% discount to book value and a realigned dividend payout, ACRE may still be attractive for passive income investors with a high risk tolerance. Read the full article on Seeking AlphaSeeking Alpha • Apr 14
Ares Commercial: Another Distribution Cut Highly Probable In 1 Year
Summary ACRE received a "Sell" rating on our last coverage as we anticipated a distribution cut. That cut came to fruition quickly and the stock is now 15% lower. We examine the current setup and show you why we think another distribution cut is probable. Read the full article on Seeking AlphaSeeking Alpha • Mar 14
Ares Commercial Real Estate: The Safest Dividend Is The One That's Just Been Cut (Upgrade)
Summary Ares Commercial Real Estate Corporation sold due to growing dividend risks. ACRE slashed its dividend by 24.2% in Q1, but the new payout is better covered by distributable earnings. The REIT's valuation multiple and 13% yield make it an interesting buying opportunity for passive income investors. Read the full article on Seeking AlphaSeeking Alpha • Feb 26
Ares Commercial: Dividend Cut, What Now?
Summary Ares Commercial Real Estate announced a 24% dividend cut due to stress in the office commercial real estate market. The REIT's reserve for expected credit losses has increased significantly, negatively impacting its fourth-quarter earnings. Despite the dividend cut, ACRE is an attractive income investment in FY 2024. I'll discuss why. Read the full article on Seeking AlphaSeeking Alpha • Feb 14
Ares Commercial: Dividend Cut Highly Probable In 2024
Summary Ares Commercial Real Estate Corporation is a commercial mortgage REIT sponsored by ARES Management. The firm does use lower levels of leverage than some other mortgage REITs in the same line. While it may do better than others, which are more levered, we see the probability of a distribution cut as fairly high and the risks are not worth the reward. Read the full article on Seeking AlphaSeeking Alpha • Feb 07
Ares Commercial Real Estate: Still Threatened By Declining Asset Values (Rating Downgrade)
Summary Ares Commercial Real Estate is a commercial mortgage REIT with a diverse portfolio of secured loans. The mREIT remains threatened by declining asset values, particularly in the office, multifamily, and industrial sectors. Weakness in the commercial real estate market, particularly in the office, multifamily, and industrial sectors, poses risks for ACRE and similar funds. Read the full article on Seeking AlphaSeeking Alpha • Jan 03
Ares Commercial Real Estate: Dividend Cut Potentially Incoming In 2024 (Rating Downgrade)
Summary Ares Commercial Real Estate Corporation has been a core holding in my passive income portfolio for the past two years. The recent negative change in the company's dividend pay-out ratio is a warning sign for passive income investors. The risks have increased to the point where a dividend cut in 2024 is not unlikely, and it may be a good time to sell the stock. Read the full article on Seeking AlphaSeeking Alpha • Dec 03
Ares Commercial: You've Been Warned About This 13.4% Yield
Summary Ares Commercial Real Estate's dividend yield has risen above 13% which reflects increased risks in the commercial mortgage lending market. The REIT's heavy investments in the office market pose a significant risk to the REIT's earnings. The increase in loan loss reserves and the discount to book value justify a downgrade of Ares Commercial Real Estate from buy to hold. A dividend cut may loom if market conditions and dividend trends don't improve. Read the full article on Seeking AlphaSeeking Alpha • Nov 14
14%-Yielding Ares Commercial Real Estate: We're Beyond The Sweet Spot
Summary Commercial real estate industry is facing macro headwinds with falling prices, elevated rates, and increasing delinquency rates for CRE bank loans. Ares Commercial Real Estate Corporation maintains resilience with stable credit performance and a well-managed portfolio. ACRE offers a double-digit dividend yield and is trading at a 25% discount to book value, making it an attractive investment for optimistic investors. Read the full article on Seeking AlphaSeeking Alpha • Oct 02
A Defensive Dividend That Pays A Massive 13% Yield: Ares Commercial RE
Summary Don't pull your goalie thinking you'll keep the puck out of your net. Defensive investing and income investing go hand-in-hand. Buy undervalued companies and enjoy excellent income. Read the full article on Seeking AlphaSeeking Alpha • Sep 25
Ares Commercial Real Estate: Enticing 12.6% Yield, But No Longer A Buy (Downgrade)
Summary Ares Commercial Real Estate Corporation's dividend coverage improved in Q2, but risks have increased due to paying out all distributable earnings and narrowing the stock price-book value gap. The company has stopped paying its supplemental dividend since 2022, leading to a more risk-averse stance and a downgrade to a Hold classification. ACRE's loan portfolio is dependent on the overall health of the commercial real estate market, which is facing headwinds and potential borrower defaults. Read the full article on Seeking AlphaSeeking Alpha • Aug 23
14%-Yielding Ares Commercial Real Estate: The Market Is Way Too Pessimistic
Summary Ares Commercial Real Estate stock price has fallen by 27% in the past year due to company-specific and macroeconomic concerns. Its portfolio is made up of 98% senior loans and the stock currently trades at a substantial discount to book value. Despite concerns about exposure to office loans, ACRE has stable non-accrual levels and a strong balance sheet, offering appealing value with a dividend yield of 13.7%. Read the full article on Seeking AlphaSeeking Alpha • Jul 22
Ares Commercial: High Dividends Don't Lie And The Worst Is Likely Over
Summary Ares Commercial Real Estate stock has seen a remarkable recovery since its post-FQ1 earnings low in May, with a price-performance return of nearly 50%. Despite challenges with its four- and five-rated loans and a significant percentage of its portfolio in the embattled office segment, ACRE has bottomed out. ACRE has sufficient liquidity to make accretive investments and expects to maintain its current level of regular and supplemental quarterly cash dividends for the remainder of the year. Investors who braved the significant pessimism to pick ACRE lows in May likely observed its bottoming process and have been duly rewarded. With macroeconomic conditions expected to improve further, I assessed that the worst is likely over. Read the full article on Seeking AlphaShareholder Returns
| ACRE | US Mortgage REITs | US Market | |
|---|---|---|---|
| 7D | -6.5% | -3.1% | 1.1% |
| 1Y | -1.7% | -1.6% | 26.7% |
Return vs Industry: ACRE underperformed the US Mortgage REITs industry which returned -0.7% over the past year.
Return vs Market: ACRE underperformed the US Market which returned 25.4% over the past year.
Price Volatility
| ACRE volatility | |
|---|---|
| ACRE Average Weekly Movement | 4.0% |
| Mortgage REITs Industry Average Movement | 3.8% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.2% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: ACRE has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: ACRE's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2011 | n/a | Bryan Donohoe | www.arescre.com |
Ares Commercial Real Estate Corporation, a specialty finance company, engages in the originating and investing in commercial real estate (CRE) loans and related investments in the United States. The company provides loan opportunities for the owners, operators, and sponsors of CRE properties. Its investments includes senior mortgage loans, subordinate debt, preferred equity products, mezzanine loans, and other CRE investments, such as commercial mortgage-backed securities.
Ares Commercial Real Estate Corporation Fundamentals Summary
| ACRE fundamental statistics | |
|---|---|
| Market cap | US$263.91m |
| Earnings (TTM) | -US$19.85m |
| Revenue (TTM) | US$54.71m |
4.8x
P/S Ratio-13.2x
P/E RatioIs ACRE overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ACRE income statement (TTM) | |
|---|---|
| Revenue | US$54.71m |
| Cost of Revenue | US$0 |
| Gross Profit | US$54.71m |
| Other Expenses | US$74.56m |
| Earnings | -US$19.85m |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.36 |
| Gross Margin | 100.00% |
| Net Profit Margin | -36.28% |
| Debt/Equity Ratio | 258.2% |
How did ACRE perform over the long term?
See historical performance and comparisonDividends
12.7%
Current Dividend Yield-166%
Payout RatioDoes ACRE pay a reliable dividends?
See ACRE dividend history and benchmarks| Ares Commercial Real Estate dividend dates | |
|---|---|
| Ex Dividend Date | Jun 30 2026 |
| Dividend Pay Date | Jul 15 2026 |
| Days until Ex dividend | 46 days |
| Days until Dividend pay date | 61 days |
Does ACRE pay a reliable dividends?
See ACRE dividend history and benchmarksCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/14 06:31 |
| End of Day Share Price | 2026/05/14 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Ares Commercial Real Estate Corporation is covered by 11 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Derek Hewett | BofA Global Research |
| Jessica Levi-Ribner | B. Riley Securities, Inc. |
| William Catherwood | BTIG |